Lawyer Indicted In Winans Inquiry

January 22, 1987|United Press International Business writer Mike Billington contributed to this report.

NEW YORK -- A former New York lawyer now living in Fort Lauderdale was charged Wednesday with embezzling more than $3.7 million from his clients and using the money for stock trades based on information leaked by an ex-Wall Street Journal reporter.

David Clark, 37, a former partner in the New York law firm of Appleton, Rice and Perrin, was charged with 55 felony counts in an indictment returned by a federal grand jury in Manhattan.

Thirty-eight counts focus on Clark`s alleged use in 1983 and 1984 of information slated for publication in The Wall Street Journal`s influential ``Heard on the Street`` column, written by R. Foster Winans, federal prosectors said.

The charges include securities fraud, mail fraud, wire fraud, making false statements to a bank in connection with a loan application, conspiracy, making false statements to federal officials and perjury before the Securities and Exchange Commission.

Clark now lives in Fort Lauderdale. The Justice Department said Clark is preparing defenses against civil lawsuits pending against him in connection with the Winans case. Those lawsuits are scheduled to come trial in New York City in April. The department said Clark is not now practicing law.

Attempts to reach Clark`s lawyer, F. Lee Bailey, were unsuccessful. Bailey, who now practices in West Palm Beach, was reportedly on his way to New York City to review the indictment.

Clark was also charged Wednesday with tax evasion for failing to report as income more than $3.7 million allegedly embezzled from clients` accounts.

Winans was convicted in June 1985 of tipping off a broker about what stocks his column would tout or trash. He was sentenced to 18 months in federal prison and fined $5,000 but is appealing his conviction to the Supreme Court.